Radian Corporation provides private mortgage insurance and related risk mitigation products and services to mortgage lenders nationwide through its principal operating subsidiary, Radian Guaranty Inc.. The company was founded in 1977 and is based in Philadelphia, Pennsylvania.
RDN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for RDN, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Radian Group Inc ranked in the 94th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 4335%. As for the metrics that stood out in our discounted cash flow analysis of Radian Group Inc, consider:
In the past 5.01 years, Radian Group Inc has a compound free cash flow growth rate of 0.78%; that's higher than 92.98% of free cash flow generating stocks in the Financial Services sector.
Radian Group Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 5.61% of tickers in our DCF set.
RDN's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than merely 5.61% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Financial Services that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as RDN, try TIPT, GBLI, ELVT, TREE, and NOAH.
At the end of February we announced the arrival of the first US recession since 2009 and we predicted that the market will decline by at least 20% in (see why hell is coming). We reversed our stance on March 25th after seeing unprecedented fiscal and monetary stimulus unleashed by the Fed and the Congress. […]
Radian Guaranty, the mortgage insurance subsidiary of Radian Group (RDN), reported new defaults on 6,173 loans in August, down from 8,477 in July.Cures dipped to 8,670 from 10,678 in July.Claims paid reduced to 63 from 92.August commenced with primary default inventory of 67,433 loans and ended the month with 64,888 defaults.The total new...
PHILADELPHIA--(BUSINESS WIRE)--Radian Guaranty Inc., the mortgage insurance subsidiary of Radian Group Inc., today released monthly operating statistics related to the credit performance of its insured portfolio for the month of August 2020. The information includes total new primary defaults, which include defaults under forbearance programs in response to the COVID-19 pandemic, as well as cures, claims paid and rescissions/denials. The information regarding new defaults and cures is reported
After a strong finish to the first half of 2020, home prices across the United States rose at a slower pace in July as compared to June. According to Radian Home Price Index (HPI) data released today by Red Bell Real Estate, LLC, a Radian Group Inc. company (NYSE:RDN), home prices nationally rose from June 2020 to July 2020 at an annualized rate of +6.8 percent.